Brazil Polyester Resin Sleepers Factor...

Project Overview

Project Progress

1    Project Site Survey	5    Complete Project Investment Signing
2    Project Feasibility Study Report	6    Complete Project Financing Procedure
3    Project Land Permits	7    Complete EPC Project Signing
4    Project Various Permits	8    Complete Project Construction

Project Details

RailInvestment has already a Land Grating of 10 hectares executed with the city of Camaquã - RS, where its Manufacture Unit will be built. The company signed an Intentions Protocol with the Government of the State of Rio Grande do Sul, in order to obtain total support regarding the feasibility of the factory and its operation. The company created a scale up growth model through various partners, respecting contracts and not creating internal competition. For Brazil, we now have enough demand for two plants, "Camaqua" and another one for "Carajás“ demand. We can build plants anywhere in the world. Our model is very simple and the raw material is easily found in any part of the world. The proposal for any of the plants is to create a Joint-Venture with RAILINVESTMENT. The required investment is US$ 12,500,000.00. The completion time for each project is one year. IRR: 125.32% NPV: 124,879,415.13 USD Regular Payback Period: 2.6 Years

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Investment Environment

Brazil is the largest country in Latin America and the fifth largest in the world by both area and population. The full use of the existing rail network and the encouragement of this mode of transport will perform a fundamental role in upgrading cargo and passengers transportation combined to both lower logistics and operational costs. At this moment, the country emerges as one of the strongest world economies and it draws attention to the promotion of the railroad transportation, with the National Railroad Plan approved in the National Congress in 2009 which includes the construction of new railroads and the improvement of the existing network. It appears as an excellent business opportunity for the components industry, highlighting among them, SLEEPERS, essential element in railroads. Nevertheless, it is important to notice that, regarding SLEEPERS, the seeking for a new technology is not only a Brazilian issue but a worldwide one. Nowadays, there are only two kinds of material for sleepers: Concrete and steel. Our product presents several advantages compared to both of them, among which, is 43% lighter, waterproof, does not contains water, more resistant, due to its dimensions allows the replacement of wooden sleepers already existing on the road, enables a smoother rolling, is not subject to corrosion, may be applied to humid places such as tunnels, has a lower transportation cost, better handling due to the lower weight, allows grafts such as jambs in its manufacture, is sustainable and recyclable. The Brazilian rail sector has experienced substantial growth in the last years fostered by the process of privatization. In August 2012 the Federal Government released the Program of Investment in Logistics, which provides investment of more than R$ 91 billion in the construction and reconstruction of 10,000 Km of railroads throughout the next 25 years, R$ 56 billion being invested until 2017. This program aims to continue the strategy adopted, in which railway lines may be shared by several providers for the conveyance of loads, through public capacity offers, which may result, in the long term, in a greater demand than the one currently expected. The Brazilian railroad system currently totals 28,465 Km (ANTT, 2011) under the administration of providers, concentrated in the South, South-East and North-East areas, representing in 2012 25% of the country's load conveyance matrix. It is expected that by 2025, 35% of this transportation is performed by trains. According to ANFT, railroad providers, in compliance with their responsibilities, have assigned resources adopting, as first criterion, the improvement of the permanent operational condition of the road of the existing networks.